The Nigerian federal government allocated a total of $3.57 billion to service the country’s foreign debt over the first nine months of 2024, marking a 39.7% increase from the $2.56 billion spent during the same period in 2023.
This significant rise in expenditure is highlighted in the Central Bank of Nigeria (CBN) report on international payment statistics.
The highest monthly debt servicing payment in 2024 was recorded in May, amounting to $854.36 million, a notable increase from $641.69 million in July 2023. In contrast, the highest payment in 2023 was $641.69 million in July, underscoring the growing burden of debt.
A closer examination of the monthly breakdown reveals notable fluctuations in the costs of debt servicing throughout the year. January experienced a dramatic increase of 389%, reaching $560.51 million, a sharp rise from $112.34 million in January 2023. February and March showed slight declines, with February’s payments decreasing by 1.8% to $283.21 million and March’s falling by 31.04% to $276.16 million.
The most significant increase occurred in May 2024, with Nigeria spending $854.36 million on debt servicing, marking a staggering 286.52% increase from $221.05 million in May 2023. Conversely, June experienced a slight dip, with payments falling to $50.82 million from $54.35 million in June 2023. July saw a 15.48% decline, while August also experienced a decrease of 9.69%. However, September 2024 marked a 17.49% increase, with payments rising to $515.81 million from $439.06 million in the same month of 2023.
The management of debt has become a growing concern for the country. In the second quarter of 2024, Nigeria’s public debt surged to N134 trillion, an increase of 10% from N121.67 trillion in the first quarter. Domestic debt rose to N71.22 trillion ($48.44 billion), while external debt stood at N63.07 trillion ($42.90 billion) as of June 2024.
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